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CEOs give strong support to nation's WTO accession bid

BUSINESS leaders from Fortune Global 500 companies are confident about China's next half century and support China's bid to join the World Trade Organization (WTO).

China's remarkable economic achievements since the founding of the People's Republic of China 50 years ago and particularly since its implementation of the reform and opening-up policy two decades ago have been widely praised by CEOs who attended the '99 Shanghai Fortune Global Forum.

"China's economic reforms and open-door policy are well on their way. We believe Chinese enterprises will emerge stronger because of the reform of State-owned enterprises and the legitimization of private companies by the government," said Juergen Strube, chairman of German-based BASF Aktiengesellschaft.

With an annual economic increase of 9.8 per cent in the past 20 years, China has become one of the most dynamic economies in the world with both rapid and sustained growth.

China's gross domestic product (GDP) amounted to 7,974.8 billion yuan (US$963.1 billion) in 1998, up 7.8 per cent over 1997.

According to statistics from the World Bank, in 1995 China ranked seventh in the world in terms of GDP, and accounted for 2.5 per cent and 12.9 per cent of the World's GDP and developing countries' GDP respectively.

In 1997, China still placed seventh in the world. Yet, with its rapid economic growth, the gap in GDP between it and major developed nations in the world is narrowing gradually.

Besides, China witnessed a foreign trade volume of US$323.9 billion in 1998, and the ratio of imports and exports to its GDP was 33.6 per cent.

Now, China ranks among the world's top 10 trading countries in terms of total imports and exports.

"We believe this century will feature a China that will occupy its rightful place as one of the elite nations of the world. The changes in China over the last 20 years have been tremendous," said Douglas Ivester, chairman and CEO of the Coca-Cola Company.

"We also foresee a more prosperous China in the next 50 years, as a more market-driven economy filters throughout the economy," Ivester said. "I think China will be able to continue embracing a market economy while retaining its very special traditions and values."

China's investment environment has also attracted a lot of investors from countries and regions around the world.

Since 1993, China has been the world's second largest country receiving direct foreign investment for five straight years, next only to the United States.

By the end of 1997, China had approved a total of 304,821 overseas-funded enterprises involving US$520 billion in contractual foreign investment and US$222 billion in actual foreign investment.

"The atmosphere for foreign investment in China is generally improving," Strube said. "The government has made efforts to make investments easier through changes in legislation. Local authorities are also being helpful by providing the supporting infrastructure and advice."

China, widely-recognized as a developing country, has made unremitting efforts for 13 years in a bid to join the World Trade Organization.

"China's pledge to continually open its markets and to join the WTO will create a huge market potential for domestic and foreign companies," he said. "If not distracted from its course, China is on its way to becoming one of the world's economic superpowers within the next 50 years."

China's bid to join the WTO has been widely supported by the world business circle.

"I believe China's greatest opportunity to be able to withstand competition will come with WTO membership." said Lawrence Zahner, president of the GM China Group.

Firmly believing China's auto market will have increasingly colourful and beautiful prospects, GM, the world's largest auto manufacturer, had promised to bring its best technology to China as early as in 1994.

Expecting to be a strategic partner of China in the country's economic development, GM has set up three joint ventures and two wholly-owned operations with a total investment of US$2 billion in China.

"If we do this, if we help build a modern industry in China, then we will get our share of that," said Zahner.

Business leaders from insurance industry also expressed great optimism about and support for China's WTO bid.

"China's inclusion in the WTO would imply an even more open Chinese insurance market and easier and quicker access to the market," said Harry Kaman, chairman of US-based Metlife's International Business Development Committee.

Although his company has not yet been permitted to enter the Chinese market, the chairman has faith in its company's future development in China.

"We support China's inclusion in the WTO and are already working hard to promote the development of relations between China and the United States," said Kaman, the retired chairman and CEO of Metlife.
(China Daily)

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